If I’m admitted into the honors college, do I have to stay in the honors dorms? Also, I’m still free to major in business, right? Sorry, I’m just trying to judge whether or not it would be a waste of time to fill out the honors app!
No, yes. 
You asked “IF” you’re admitted: IF you have the qualifications to belong to the Honors College, you will be admitted automatically based on your stats. The HC application is simple and does not take much time at all…
You don’t have to stay in the honors dorms, and you can major in whatever you want. At Alabama, you can be as involved or not involved in the Honors College as you wish. There really isn’t any downside. If you find you can’t complete the requirements for the Honors College, you won’t have the Honors College designation when you graduate, and if you’re not making progress toward the requirements, you may not be able to remain in the Honors College. But when you’re just starting out, I can’t think of any good reason not to apply to and be part of the Honors College. Although priority registration is not as good as it once was, it’s still a nice perk and reason alone to join the HC.