The primary doctrine of the Lutheran Church is the justification of believers by faith alone in merits of Christ and nothing else. We cannot be saved by our works, no matter how good they might seem. God demands perfection and none of us can offer God a pure and perfect life. Thus, when understood properly, the doctrine of justification of faith is pure Gospel, the sweetest good news we can hear.
While doing my devotional reading yesterday, I came across a portion of Philip Melanchthon's discussion on faith from his Loci Communes (meaning "Common Places in Theology"). Melanchthon's writing, heavily influenced by Martin Luther, helped to bring forth the Reformation of the church. Be encouraged by what Melanchthon writes about "faith."
We must carefully consider the term "faith" and see what Paul is doing when he says that we are not justified by our works but by faith in Christ. This is new language to Roman ears, and we must at the very beginning seek the genuine and simple interpretation of it. To be justified by works means to obtain forgiveness of sins and be righteous or accepted before God by reason of our own virtues or deeds. On the other hand, to be justified by faith in Christ means to obtain remission of sins, to be counted as righteous, that is, accepted by God, not because of our own virtues but for the sake of the Mediator, the Son of God...As the Baptist cries, "Behold the Lamb of God who takes away the sin of the world," John 1:29, so Paul wants to present this doctrine to us, and he teaches that remission of sins and reconciliation are given to us for the sake of the Son of God and not for the sake of our virtues.
Thus, when he says that we are justified by faith, he wants you to behold the Son of God sitting at the right hand of the Father as the Mediator who intercedes for us, and to understand that your sins are forgiven you because you are considered or pronounced just, that is, accepted for the sake of His own Son, who was the sacrifice. Therefore, in order that the word "faith" may point to the Mediator and apply to us, "faith" refers not only to historical knowledge but also to trust (fiducia) in the mercy promised for the sake of the Son of God....