If you're going to go to the trouble of canning apples, why not make apple pie filling alongside the sauce? As soon as my apple tree ripens I'm going to make a few quarts. Keep some phyllo dough in the freezer and you can make fresh turn-overs all winter!
Water bath is fine for applesauce. Add 1 teaspoon lemon juice or 1/2 teaspoon citric acid to each jar to ensure high enough acidity.
I like this website a lof for their canning guidance. It's what I used to learn to can last year. http://www.pickyourown.org/applesauce.htm
I used a stick...