Martin Luther wrote, "There is no justification without sanctification, no forgiveness without renewal of life, no real faith from which the fruits of new obedience do not grow."
In Scripture, all true believers are sanctified in Christ. Sanctification is not the second blessing, coming as a distinctly separate stage in the Christian life. One who believes on the Lord Jesus Christ is immediately justified and sanctified by the Spirit of God.
We are "elect according to the foreknowledge of God the Father, in sanctification of the Spirit, for obedience and sprinkling of the blood of Jesus Christ" (1 Peter 1:2). The blood of Jesus sanctifies every true believer in Christ. Believers are sanctified, set apart, as God's chosen people in Christ.
God sanctifies or sets us apart as the purchased possession of Christ. You are bought with the price of His blood shed at the cross. The cross work of Christ is applied to your life in justification as well as sanctification.
God sanctifies us by faith in the gospel, upon trusting Christ as your Lord and Savior. However, our sanctification is a continuing process of growing in the grace and knowledge of Christ (2 Peter 3:18). Sanctification leads to our glorification at the return of Christ. Until then, believers are sanctified in Christ.