Balloon payment is one of the terms that you should know if you will be applying for a loan soon. Your initial payments will be lower if you get a balloon payment. However, the payments at the end will be higher. You may need a cosigner if your credit is not good. This is someone who will sign the loan contract with you. If you default on the loan, then they will have to make the payments. The cosigner's credit can also be adversely impacted if payments are missed.
Your creditor is the one that finances the loan. The creditor will evaluate your credit worthiness. It evaluates a person's ability to pay their bills. They will obtain a credit report from the credit bureau. You will get a Certificate of Title from the Department of Motor Vehicles. This is a document that proves you own the vehicle.