Step 3: Approximate derivative(s) by finite difference approximation(s). Very common (standard!) formula for u^{\prime\prime} : u^{\prime\prime}(t_n) \approx \frac{u^{n+1}-2u^n + u^{n-1}}{\Delta t^2}
Use this discrete initial condition together with the ODE at t=0 to eliminate u^{-1} : \frac{u^{n+1}-2u^n + u^{n-1}}{\Delta t^2} = -\omega^2 u^n