First thing, install a brand new needle. Old, damaged needles will skip stitches. Needles should be changed at least every 8 hrs of use.. You don't say which thread is loose. If top thread, remove the thread from the machine. ALWAYS RAISE the presser foot and rethread from beginning. Set top tension to midway point and re-test the machine.
If top thread is still loose, increase the tension. Tension is correct when both threads meet in the middle of the fabric. The two threads play tug-of-war against each other. When both tensions are even, the stitches will be uniform.
Understanding Thread Tension Threads
Free manuals are difficult to find for Baby Lock and service manuals are usually not available to the public. If your machine is computerized, it probably should not be oiled except by a qualified technician. If the machine is mechanical, most times a drop or two of "good quality" sewing machine oil applied every place where metal rubs metal parts will help the machine.
I sew a lot. Can you type exactly what the pattern is telling you to do?
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