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I bought a pretty nice italian leather Blackhawk holster for my PT145 but its made for the Springfield XD (non-compact). They didn't have the one for the XD Compact otherwise I would have gotten it. Anywho the holster fits the body great but is about 1-1.25" too long. I was thinking of just taking my hacksaw or utility knife to it and cutting it to length but what's the best way to finish the edges and make sure the small amount of stitching I will cut won't come unraveled? Thanks!

If you want it to look really professionally done underneath your cover garment take it to a good holster maker.
If you are like me on the 1/2 doz or so that I have done that to then:
1. See if you can back the stitches out far enough to get behind your cut.
2. This will give you enough thread to knot it again. If it will not unstitch or you dont want to spend that much time, a couple of drops of superglue on the thread line both sides of the holster.
3. Cut it off, a little sand paper on the edge & I am done.

LT hit the nail on the head. I did this with a holster that was an inch too long. To finish off the cut end, I dabbed some Elmers Glue on the raw leather to seal it then black dye to color it to match. It ended up looking like a factory edge.

Take the holster with you and go any Tandy Leather shop. They can show you how to do anything that you want to do. They also can sell you the items that you will need to complete the job. Some needles, waxed thread etc.. Probably less than $10 total.

I did the same thing to an overlength Gould leather holster. It was for a Glock 30 originally, and was about 3/4 inch to long.
I used one of the old single edge razorblades to do the cut. Then I burnished the edge over with a little water and the rounded handle of a spoon.