Ah, as a holster maker I have to say there's a little more to it.
Don't wrap the gun in plastic, since this will make the finished holster too loose.
Apply a thin coat of lube to the gun.
Using either alcohol, or warm water with a bit of liguid soap as a wetting agent, wet the holster until JUST damp, NOT soaking wet.
Allow it to stand for a few minutes, until it is softened. This is called "caseing" the leather. When it feels cool to the touch, but not wet, it's ready. With light colored leather, when it return to it's natural color, and still feels cool, it's ready.
Put the gun into the holster and gently press the leather around the gun with your fingers, molding it around the frame and cylinder. (Clean hands or it will stain the leather).
REMOVE THE GUN, and allow the holster to dry in a cool place on clean paper towel. Don't allow anything to come in contact with it until dry since this will either stain it, or leave marks in the leather. Don't try to force dry with heat or direct sunlight.
Apply whatever leather dressing you like.
Since rawhide is the only leather that shrinks when wet, leaving the gun in the holster will cause the holster to be looser, not snugger.
One of the best holster final finishes is Fibeing's Resolene. It's a glossy, water proof top coat that actually stays put. It won't crack and peel like most others, and seals dyed leather. Apply one coat only, with sheepskin or airbrush, and force dry with a hair dryer.