What purpose does the closing instructions form serve? it is signed at closing by the closing agent to verify that the funds have been properly disbursed. it is signed by the closing agent and sent to the lender to verify that the loan documents have been properly signed. it is prepared by the broker when a contract is being negotiated to serve as escrow instructions to the closing company. it is prepared by the closing agent to verify to hud that the hud-1 has been properly executed?