There it is - "type 2 works salvation" or salvation by works at the back door. I knew something was off with your core beliefs. That error stems from confusing justification with ongoing sanctification and is similar to what I was taught in the Roman Catholic church.
Nice that you have invented some terminology for your erroneous understanding. I had exposure to the financial investment world, so we used to refer to some similar concepts as front-end loaded or back-end loaded.
Sure, my core beliefs are off, says the person who can't explain the foundational meaning of "Christ" using a short Psalm evangelistically directed by Christ's Apostle Paul, and now can't see things I've paraphrased by taking directly from 1Pet1.
Though I'll always be learning, I'm not confused re: entrance into God's Salvation Plan which some label justification and then abiding and growing in God's Salvation Plan which some label ongoing or experiential or progressive sanctification. Please do note that I'm purposely referring to both of these as parts of Salvation, because this is how Scripture speaks of Salvation.
What you're confused about is in part thinking in terms of theological constructs - manmade labels - while overriding Scripture.
Let's face it, you cannot read Psalm2 and explain who and what "Christ" is, and now you cannot read 1Pet1 and see how much Peter includes in regard to the things I stated. Re: both Ps2 and 1Pet1 you've imported external concepts into both of them. With such a practice, of course you'll find something off when someone remains tight with the Text. Your eisegesis vs. any exegesis don't mix.
One of the problems in our time is that so many are oriented to thinking in terms of various theological traditions - which is in part just the outgrowth of what Paul spoke about in 1Cor3 re: personal favoritism - and are not well-versed in Scripture. This problem of Scriptural illiteracy has been on the radar and under discussion for many, many decades if not centuries. You seem to have come out of Rome and ended up in anti-Rome that took you too far. Now you need to let Scripture bring you back to Truth.
I'm happy to go back to Ps2 or now to 1Pet1 verse by verse to point out some things but you'll have to find some objectivity I don't know you're capable of at this point. If we do so, I'm going to be asking more questions along the way.