You are not correct. Your application is looked at as soon as it is complete - all of your recommendations in, your interview complete, your test scores received, etc. Boards meet monthly, I believe. Your status with the schools you list has no bearing in the NROTC selection process.
Your scholarship will be awarded at one of the five schools you list on your application, whether or not you have been accepted to that school or not. That is why it is wise to choice units at schools (or with cross-town affiliates) where you have a decent shot at getting accepted. You may (or may not) be able to transfer your scholarship to a different school later.
So the situation may exist that you have been awarded a NROTC scholarship to a school in January, but don't know if you are accepted to the school until late March. Or vice-versa. They are independent processes.
Do not delay in getting your application in. The sooner you apply, the better chance you have.