Sanding is an important part of drywall finishing, and is often needed after installing drywall, repairing it, and prior to painting it. You have to sand all those areas where you applied drywall joint compound or mud. It includes the seams where two drywall boards meet, the inside and outside corners, and the nail holes. These areas tend to have rough and uneven patches post the application of joint compound. If you sand these areas properly, they take on a smooth surface that blends well with the rest of the drywall.