"This baby solidifies that they are creating roots here in the States," a friend tells PEOPLE in this week's issue

In the weeks leading up to their daughter's arrival, Meghan Markle couldn't wait to meet her baby girl.

She has been in "good spirits and absolutely glowing," a friend tells PEOPLE in this week's issue. "She was just ready to have this baby!"

The Duchess of Sussex kept up a busy pace, running errands and shopping in preparation for baby Lilibet Diana, who was born on June 4. She also started 2-year-old Archie in a morning program at a preschool a few days a week.

"He is big enough that he is now starting to have his own life too," a source tells PEOPLE. "He enjoys preschool and outdoor activities."

The past few months have also been filled with immense gratitude after the pain of experiencing a miscarriage last summer. Meghan described the "unbearable grief" she and Harry felt in a searingly honest essay in the New York Times in November. As they shared their heartache, they also embraced the joy that they were expecting again.

"They just took it one day at a time, they wanted to have this moment for themselves," the friend adds.

Meghan, Duchess of Sussex
Meghan Markle
| Credit: Samir Hussein/WireImage
Prince Harry and Meghan Markle Royals Cover

Life in coastal Montecito, where Meghan and Prince Harry moved into a nine-bedroom home in July, "is very quiet and perfect for them," adds the source. "They are close to the beach, which they enjoy, and they also have friends in the neighborhood that they spend time with."

"They spend a lot of time at home with Archie but have also managed to get a few date nights in as well," the source adds. "This feels like their first proper home together, because they were able to find a house that they both love. It's nice to see them enjoy life."

Archie Mountbatten-Windsor 1st birthday
Meghan Markle and Archie
| Credit: The Duke of Sussex/@SaveChildrenUK

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The couple's routine now includes baby Lili, who has filled their home with even more joy.

"They're so happy," the friend says. "This baby solidifies that they are creating roots here in the States.

"It's like a clean slate — almost like a new beginning."