Need a home improvement loan? Well, here is a valuable tip for you. Before you sign any contract, make sure the contract contains:

* The contractor's name, address, phone, and license number, if required.

* The payment schedule for the contractor, subcontractors and suppliers.

* An estimated start and completion date.

* The contractor's obligation to obtain all necessary permits.

* How change orders will be handled. A change order - common on most remodeling jobs - is a written authorization to the contractor to make a change or addition to the work described in the original contract. It could affect the project's cost and schedule. Remodelers often require payment for change orders before work begins.

* A detailed list of all materials including color, model, size, brand name, and product.

* Warranties covering materials and workmanship. The names and addresses of the parties honoring the warranties - contractor, distributor or manufacturer - must be identified. The length of the warranty period and any limitations also should be spelled out.

* What the contractor will and will not do. For example, is site clean-up and trash hauling included in the price? Ask for a "broom clause." It makes the contractor responsible for all clean-up work, including spills and stains.

* Oral promises also should be added to the written contract.

* A written statement of your right to cancel the contract within three business days if you signed it in your home or at a location other than the seller's permanent place of business. During the sales transaction, the salesperson (contractor) must give you two copies of a cancellation form (one to keep and one to send back to the company) and a copy of your contract or receipt. The contract or receipt must be dated, show the name and address of the seller, and explain your right to cancel.