KQs VS LAG

PartyGaming - $0.02 NL - Holdem - 8 players
Hand converted by PokerTracker 3

CO: $0.94
BTN: $3.51
Hero (SB): $3.14
BB: $1.78
UTG: $4.37
UTG+1: $2.00
MP: $1.82
MP+1: $1.53

Hero posts SB $0.01, BB posts BB $0.02

Pre Flop: ($0.03) Hero has Q♥ K♥

fold, UTG+1 calls $0.02, fold, MP+1 raises to $0.04, fold, fold, Hero raises to $0.12, fold, fold, MP+1 raises to $0.20, Hero calls $0.08

Flop: ($0.44, 2 players) 5♦ 3♣ 3♥
Hero checks, MP+1 bets $0.12, Hero calls $0.12

Turn: ($0.68, 2 players) Q♦
Hero checks, MP+1 bets $0.22, Hero calls $0.22

River: ($1.12, 2 players) 7♣
Hero bets $1.07, MP+1 calls $0.99 and is all-in

Hero shows Q♥ K♥ (Two Pair, Queens and Threes) (PreFlop 46%, Flop 28%, Turn 93%)
MP+1 mucks 8♠ A♣ (One Pair, Threes) (PreFlop 54%, Flop 72%, Turn 7%)
Hero wins $0.00
Hero wins $2.

Villain is a loose aggressive player who will bet until the river with air. This hand was quite scary since he has a very wide range of hands and you don't know if he is bluffing or not since he just keeps on betting with any hand. When the flop came I was thinking that he might have something but I just called because I have overcards. If the Q had not shown up on the turn i would have folded my hand. I was really wishing that he did'nt have a full house, 2 pairs or 3 of a kind. I felt I was gambling too much with this hand since I only have the queen. When I saw the 7 I felt well since I have the highest pair on the board and he is a LAG i just went for broke. Could I have played this hand more cautiously or should'nt I have folded on the river when he bet? Was my play correct?