What Stag said. Make sure you have the hole for the bolt drilled first. If the door isn't solid oak or something, you can probably trace the outline of the area you need with a razor knife, then chisel from there.
A good chisel is one of those tools that you don't really appreciate until you actually need one. A good sharp chisel will make very quick and easy work for this project. Even if you have to buy a cheap one from Home Depot, it is the RIGHT tool for the job and will make it much easier.