I'm new to texturing so I have a jpeg file of a fabric texture and applied it to my cloth. However it seems to be magnified a lot. How do I zoom out or make the fabric texture smaller? When I enlarge the UV map of the cloth on the left I notice its similar to the fabric texture tile
The texture is just a small section of a piece of cloth, so the UV map of the cloth should be a lot larger than the image. In the UV Editor window on the left scale the shirt UV by pressing S and dragging the mouse, hit Return to set the scale.
It also looks like the orientation of the fabric is perpendicular to your UVs. Press R to rotate, enter "90" for rotating 90° and hit Return to set the rotation.
The JPEG file should be a tileable texture so that repetition is not so obvious.