They requested that I NOT pulled credit until I had the costs and an estimate of a rate which I was getting within the day.
The applicant doesn't have the right to tell you how to underwrite their loan. They are either applying or they are not. If they dropped off an application, that means they want to apply. If your institution procedures are to pull a credit report immediately, then you should.
If the "applicant" wants costs and rate estimates, you can discuss these things and still call it an inquiry, but once you have an application, your 3 day clock is ticking to provide the LE. You should never issue a LE without having pulled a credit report.