You should not have a hole in the middle. Precise folding will prevent the hole. To not have raw edges, you need to press a seam allowance all around the square before folding. There is a very good YouTube video that shows all this. I can add the link later today.
Here is a link to the Youtube video. She sells a template, but you can make your own template out of heat-resistant template material:
https://www.youtube.com/watch?v=gaY-WIcdqfE
And this woman does the same thing but does not use a template. She secures the points in the middle with a couple of hand stitches:
https://www.youtube.com/watch?v=yWQJG4GsAls