Hi guys this is my first post! I have been following this forum for about 10 months and it has greatly improved my credit. My fico went from a 518 to 639 in 10 months. My husband and I recently went to speak to a loan officer about a rural home loan. His credit is 551 (fico score). He makes 2 1/2 times the amount I do; however, no loan is possible with him on there. So needless to say I had to do it on my measly 12 dollar an hour job (I am also a full time student). With that said, he came back with a loan offer that blew my mind. I got approved for 100k house (which here is a lot of house in rural GA), low mortgage payments and no money down, with an APR of 3.7% however, needing one more point.
Now here is my dilemma, we mainly went to speak with him to see where to start, how to better our credit, and ask all the questions with the intention of buying a house in March (if there was a possibility). He urged me to open another line of credit. I have my school loans since I started almost 11 months ago, perfect pay on time, and a first premier card for going on 8 months perfect on time paying. So I followed his advice and applied for Capital one, speaking to the lady for over 45 mins before applying.
I gave her everything on my credit so she knew which would be the best to apply for. I only had one hard inquiry on my credit (from the loan officer above). After her telling me to go safe and apply for the rebuilding credit card, I was denied. I have no idea why yet as I have not received the letter. Now I feel like I am stuck between a rock and a hard place. I was one point under 640 before the loan to get the best rate possible, and now I have 2 hard inquiries on my credit.
What advice would anyone offer here, do I try for another card or something risking another HI pull? I only have 2 revolving credit lines on my CR, my school and this CC. I just do not want to ask for a limit increase with them charging 25% on the 100. I would greatly appreciate any advice 
Thanks in advance!! -K
What type of Cap One card did you apply for? Did they give a reason for the denial?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! 
You may get some good advice in the mortgage section of the forum. However, if you read many threads on here, then you would know that in most experiences applying for credit while trying to close a home is a big no no.
He is telling you to get me more credit, which when you add the card to your accounts it will lower you AAoA, which could and possibly will lower your score making it even more difficult to get your loan. Not to mention the credit apps usually affect underwriters (general rule is no apps within 6 months of applying for mortgage).
Your loan officer is probably trying to do the right thing, "he wants his commission", but may not be the best one to get advice from. I am not saying I am the best person either, but look at the collective group of informed consumers on MyFico forums and you will get some sound advice.
Best of luck to you.
Thanks for your advice, that is why I am here. I think the best way to learn is to talk to people who have already walked in my "future shoes"
Sounds like the officer is just trying to get that extra point - which ends up being a cool $1,000 in her pocket.
So was your loan already approved after it went through underwriting and all that? Or has the officer just said "oh, we can definitely offer you this"? Because I think that's a big distinction and will likely change how you go through the credit card process. If it hasn't gone through underwriting, you are not truly approved for anything, as far as I am aware.
As stated, it's generally not a good idea to put any new inquiries or accounts on your credit so close to mortgage. But if you haven't gone through underwriting yet, it's possible that this didn't do any additional damage. You'll have to wait and see I suppose. But try to research a little more on the process. Without the knowledge, you will rarely fall into the best possible deal. But with knowledge of the process, you can save some money and a lot of hassle.
So are you able to wait a few more months for that score increase, or do you need the mortgage today?
It seems to me that if you are able to get a new card (secured may work for this purpose) and then wait 6 months for the inquiries to age, your scores have a chance to increase those 20 points. Obviously there is no guarantee, but 6 months would give you at least a fighting chance.