Before you get your home improvement loan, ask the contractor you are considering some pointed questions. Are you licensed and registered with the state? While most states license electrical and plumbing contractors, only 36 states have some type of licensing and registration statutes affecting contractors, remodelers, and or specialty contractors. The licensing can range from simple registration to a detailed qualification process. Also, the licensing requirements in one locality may be different from the requirements in the rest of the state. Check with your local building department or consumer protection agency to find out aboutlicensing requirements in your area. If your state has licensing laws, ask to see the contractor's license. Make sure it's current.