Noticed these fuzzy little balls clumped together in my pot. Its not a root. The other holes have very very very small white dots in the soil almost like little tiny specs of mold or eggs. Should it be alright or should I do something about it?
You may need to exclude root aphids. However, you will often encounter a white growth of fungi, which is harmless and even beneficial to the plants. I have seen the fungi on many of my plants which grew without any ill effects. The aphids in the picture below appear large enough to be spotted with the naked eye. Anyway, it is advised to pull-out the pot and look at the root clump itself.
EDIT: The aphid is an insect, it has the tell-tale shape of the aphid: The elongated body, that looks like a grain of rice, with head and legs. Make sure you don't have a "wooly aphids" which are also white and furry. The wooly aphids often secrete a yellowish liquid when pressed with the fingers. On the other hand, the fungi have extremely thin hair. It may be hard to distinguish without magnification when you see it for the first time. Here is how a mycorrhizae growth looks like without magnification: