Do you need to waterproof the outside to protect the inside walls?
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Bothamaniam
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Most houses now days have a wrap applied to the outside sheathing to protect the wood and prevent air and water leaks, Tyvek..... http://www.dupont.com/products-and-services/construction-materials/building-envelope-systems/brands/water-barrier-systems/products/tyvek-homewrap-superior-house-wrap.html?src=gg-kg_tyvek-be-us_tyvek-house-wrap&gclid=CjwKCAjw0qLOBRBUEiwAMG5xMKuOD2QDSZddVzAsbogsicO8SkN5sf9zB15LKTSiSyWxrW3VzkoJJhoC4FYQAvD_BwE
Older homes used tar paper on the sheathing to prevent leaks.
Whatever siding you have on your house, is painted, or siding which is finished already to make you house waterproof and protect it.
If you have areas that get consistently wet, fix the water problem. If you need to make an area more water imperable get some Rustoleum Never Wet to repel water, its a spray on 2 part system.