IMHO, usually, there are three types of "application" very much simplification
Pre-qualify - "how much house can I afford" - s/b no credit pulled and information solely from documents provided - "based on your income and cash, you can afford a home in the $xxx to $xxx range with 20% down". Not HMDA reportable
Pre approval - "I'm looking for a house and want to know if I would qualify" - bank underwrites the loan, performs verifications and approves subject to suitable property being found. "You are approved for $XXX until xx/xx/xx subject to the property being suitable" HMDA reportable
Application - underwritten with property - HMDA reportable
Integrity. With it, nothing else matters. Without it, nothing else matters.