This is a cardinal teaching of God’s Word that helps the believer to know the state of his affairs with God after committing his life to Jesus. The believer who knows their position in God has assurance of salvation and appropriates their privileges and kingdom rights. Another word for this divine concept is ‘regeneration’. What happens at salvation is that God’s grace brings a person to God through Jesus Christ, and he receives the forgiveness of his sins and is accepted into the family of God.
Justification means that he is counted righteous before God because of the transaction that took place at his salvation, and he stands before God a clean man – as if he has never sinned. That is justification! Justification comes by faith in the atoning blood of Jesus Christ and not by works.
The believer was guilty of sin before his conversion, but now (that he is a believer), he is cleared of every charge and acquitted. He was condemned to eternal death and perdition, but now, there is no more condemnation because he is in Christ Jesus. A true believer in Christ Jesus is cleansed, saved, and justified/regenerated.
The new life of the believer shows the state of his soul. He lives in newness of life, having had the forgiveness of all his sins and been ushered into a new covenant, which is a covenant of righteousness, peace, and joy in the Holy Ghost. He is quickened by God’s Spirit to live for Him. He is saved through faith in the Lord Jesus Christ. He walks in love towards God and others. He manifests the fruit of the Spirit.