What does it mean to be "justified?"

While I was on my mission I came across several scriptures in the New Testament that mentioned being "justified." I had no idea what it meant to be justified. I thought that it probably had something to do with being supported like justified in your actions, or justified with your answer, but I just wasn't really sure. I wrote home to my dad about this topic and began to search the scriptures on my own. What I found was an amazing set of doctrines that link in perfectly with the Gospel. It is Justification, Purification, and Sanctification.
The first place I went to was the dictionary where one of the definitions of justification says "To cause to be free of the guilt or penalty of sin, and to be reconciled to God." In my journal I have written, "Faith is required in order to be justified, and we have access to the Peace that God offers through faith. Grace = Peace, Grace = Diving love and protection, Peace = Calm, tranquility. So we have access to grace and peace, or God's love, protection, and tranquility through faith in Jesus Christ, and then comes a hope of the glory of God. Hebrews 5:9 says "being now justified by His blood, we shall be saved from wrath through Him." Being cleared of blame or guilt by the blood of Jesus Christ, we will escape the wrath of God, His punishment to those who break His commandments, as required by the law of Justice." Justification is a divine verdict at the bar of judgement of not guilty, but not only are we found not guilty, but because Christ shares his absolute and infinite perfection with us, we are also found to be fully righteous. Whereas He formerly condemns, He now vindicates (which means cleared from suspicion, wrongdoing, hint of wrongness.) Although as sinners we once lived under God's wrath, as believers we now live under God's blessing. Titus 3:7 "That being justified by his grace, we should be made heirs according to the hope of eternal life...not by works of righteousness which we have done, but according to his mercy he saved us, by the washing of regeneration, and renewing of the Holy Ghost." We are saved not by our own works, but by the Grace of Christ. And how does He do it? He tells us, let me break down the last part of that scripture. "He saved us, by the washing (cleansing with water) of regeneration (being spiritually reborn) and renewing (to become new, or restore to a former sound condition) of the Holy Ghost. What does that sound like? The basic Gospel of Christ. Faith, repentence, baptism by immersion, and receiving the Gift of the Holy Ghost. We are saved, justified, and made heirs by the power of the Atonement when we submit ourselves to Him, and follow His Gospel, which has now been restored to the earth in all its fulness.