Romans 4:1-8, What shall we say then that Abraham our father, as pertaining to the flesh, hath found?
For if Abraham were justified by works, he hath whereof to glory, but not before God.
For what saith the scripture? Abraham believed God, and it was counted to him for righteousness.
Now to him that worketh is the reward not reckoned of grace but of debt.
But to him that worketh not, but believeth on him that justifieth the ungodly, his faith is counted for righteousness.
Even as David also describeth the blessedness of the man, unto whom God imputeth righteousness without works,
Saying, Blessed are they whose iniquities are forgiven, and whose sins are covered.
Blessed is the man to whom the Lord shall not impute sin.
Ephesians 2:8-9, For by grace are ye saved through faith; and that not of yourselves: it is the gift of God:
not of works, lest any man should boast.
Romans 11:5-6, Even so at this present time also there is a remnant according to the election of grace.
And if by grace, then is it no more of works: otherwise grace is no more grace. But if it be of works, then is it no more grace: otherwise work is no more work.
Titus 3:4-7, But after that the kindness and love of God our Saviour toward man appeared,
Not by works of righteousness that we have done, but according to his mercy he saved us, by the washing of regeneration and renewing of the Holy Ghost:
Which he shed on us abundantly through Jesus Christ our Saviour;
That being justified by his grace, we should be made heirs according to the hope of eternal life.
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Notice that in these verses, the doctrine of imputed righteousness is evident.
Also, the definition of grace, while it includes in the spectrum of what it means "the enabling power of God", has a range of other valid definitions:
1) unmerited favour;
2) getting what we don't deserve (heaven); as opposed to mercy, which is not getting what we do deserve (hell);
3) the enabling power of God
4) God's Riches At Christ's Expense
5) Goodness Rendered As Christ Empowers.
Now I want to focus for a moment on definitions 1), 2), and 4).
These definitions focus on the aspect if grace that represents justification and forgiveness of sins.
In the substitutionary atonement (which is the gospel by which we are saved); God the Father looks at Jesus as He died on the Cross in our place, and sees all of our sin(s) and imperfection(s); and punished it in Him as He took the penalty for our sin(s). Now when He looks at us, He sees the perfect life, blood, and righteousness of Jesus as it is applied to us by imputation through the appropriation of His blood to our sin(s) through faith in God's propitiation.
Now in definitions 3) and 5), we must understand that these have to do with grace as it applies to sanctification; and that this is a separate issue from justification. Once we are forgiven perpetually of all of our sin(s), God begins to do a transforming work in our nature and character.
It is like this: In justification, we are declared righteous by God through faith in Christ's shed blood; and this imputation of righteousness is true and immutable even when we blow it. For God counts righteousness even to the ungodly sinner when he has faith in Jesus (Romans 4:5).
And therefore my identity in Christ as one who has believed on His propitiary work is that I am righteous in Him no matter what: even when I blow it I am righteous before Him.
Now that I have this identity, my best response is to begin to live like I am what God says I am. The fact that I am righteous means that I will do righteous things (1 John 3:7).
So then, sanctification is the result of unconditional justification (of course when I say unconditional, the exception to this is that there is always the condition of faith in Jesus; but other than that there are no conditions).
God also enables me by His grace, in sanctification, to live a holy life before God and men.
However, please note that the reason that God has for this is not salvation; for that is accomplished in justification and the forgiveness of my sin(s). The reason why God sanctifies His people is found in Philemon 1:6. The communication of our faith becomes effectual through the acknowledgement of every good thing that is in us in Christ Jesus.
We do not have to wait to be "fit for heaven' in order to be saved. We will automatically be made fit for heaven when we receive our glorified bodies when we are translated into His kingdom; if we are born again through faith in Jesus and what He did for us on the Cross (1 Corinthians 15:1-4). Our salvation therefore rests in the forgiveness of our sins through faith in the shed blood of Christ (Romans 4:6-8).