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I don't see how to avoid making this a replay of justification, since it's essentially the same topic.
Justification, that is being made righteous, is not salivation. It's a part of God's grace that saves but other parts exist too, such as the life of Christ infused into the faithful, the love that God infuses into the soul of the just, and a number of other graces given to God's people.
I agree with the OP. The term is used in different ways. Both within Scripture and even more in theology.
Jesus seems to use it in 2 ways
* being saved in the end
* changing from someone outside the Kingdom to inside; repentance
Are we actually justified by faith? Yes, I think so. But you need to understand what faith is. According to the huge article in TDNT it is really the whole attitude of humans in response to God. It thus combines faith, faithfulness, trust, and even obedience. However in the NT it tends to mean primarily trust. I think that's the sense in which Jesus uses it. But Jesus doesn't say we are justified by faith. Paul does.
For Paul there's a specific context. He is, as TDNT says, using it as one of two principles of salvation (the other being Law). For him the question is whether we rely on God for salvation or on our own obedience to the Law. Clearly our salvation comes from God, not anything we do. I don't think anyone disputes that. But he also teaches that we'll be judged by our actions -- or perhaps better, our lives -- although I think we have to be very careful about that to avoid a checklist mentality or legalism. So just because salvation is from God, independent of our own worthiness, doesn't remove the fact that we are held responsible for how we respond.
Thus the common position that Paul taught justification by faith and judgement in accordance with works. I think the same is true of Jesus.
But faith in this context is not "I think that's true."