There is nothing wrong with Loveland. It is a nice town, but if you are wanting to enjoy Estes Park, Grand Lake, Rocky Mountain National Park or Roosevelt National Forest, Loveland is too far / too inconvenient to drive there every day.
It is a bit deceiving to look at it on the map. The distance from Estes Park to Loveland is only about 30 miles. But it will take an hour to drive it. We just did this last week. We had a house on High Drive near the Beaver Creek entrance to RMNP in Estes Park. We took the kids one day to Cheyenne, WY. It took us just a tad over an hour just to get to Loveland.
Estes Park and the surrounding areas have so much to offer. Staying in Estes Park would be so much better. A VRBO would be great because you could cook and save so much money on food. Estes Park restaurants are expensive... I think that and I live near the DC metro area where everything is expensive. Groceries are high in Estes Park too, but still cheaper than a restaurant. We spent roughly $325 on groceries for a family of 5 for 10 days. We ate out for lunch and dinner a few times and of course ate Elkhorn Ave sweets!