“They are the happiest couple. Just so excited about being engaged and planning a wedding,” a source tells PEOPLE of Bloom, 42, and Perry, 34.
“They are secretive about details, but seem to want something smaller and intimate,” the source shares, adding, “They look forward to starting a family together as well.”
For now, the pair have been enjoying Coachella.
On Friday, the happy couple was spotted holding hands as they walked around the festival grounds.
The pop star wore a black crop top with a pair of flame-print pants and a black jacket, while the actor was dressed in a bright yellow hoodie with a pair of matching shorts.
Bloom and Perry became engaged on Valentine’s Day of this year, announcing the happy news on Instagram.
The singer shared a close-up selfie of the two surrounded by numerous heart-shaped balloons while showing off her unique flower-shaped diamond ring, which features a colorful jewel in the center.
“Full bloom,” she sweetly captioned the image, using a play on her husband-to-be’s name.
Bloom went on to share the same image on his own Instagram, captioning the adorable snap, “Lifetimes.”
In March, a source close to the actor told PEOPLE the couple is “slowly planning their wedding” but “they don’t have a date yet.”
“Their past weddings were, of course, very different,” added the Bloom source. “They are trying to find a middle ground now.”
Perry exchanged vows with ex-husband Russell Brand, 43, in a private but extravagant ceremony in India in 2010, less than 10 months after the pair got engaged. Bloom was also previously married to model Miranda Kerr, 35, whom he wed in an intimate ceremony in July 2010 just one month after their engagement was confirmed.
Bloom and Kerr share 8-year-old son Flynn.
Bloom and Perry are also living together, with the actor putting his home on the market, according to a source.
“Since they are engaged, it was just a natural step for them to live together,” the source told PEOPLE in March, adding that Kerr, with whom he shares 8-year-old son Flynn, “doesn’t have an issue” with the living arrangement.
“Miranda knows Katy and the two get along,” the source said. “Miranda doesn’t have an issue with Flynn being at Katy’s house when Orlando has custody. Everyone is getting along great.”