Best way to save and apply template to a widget

I am working on a SAAS project where users create widgets to their websites.
One of their abilities is to create a messaging template and apply it to their widgets.

When saving a template, the user can name the template and apply it to one or several of their widgets.

Now the problem I am facing is how to save and apply the template.

Option 1:
Single button “Save & Apply” which opens a modal where the user types in the name of the template and a drop down of his widgets to apply

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Option 2:

Two buttons – Save Draft and apply

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Each one of the buttons will open a modal:

Save draft – The user will name his template and it will be saved without being applied to the widgets

Apply – The user will apply the template he is currently working on to a single or several widgets.

Which way is most correct?