We need God's mercy, grace, and forgiveness for all three. And it's not just the acts of sin and transgression, it's the condition of our hearts. Fallen, broken, sinful beings that we are, we have no hope of gaining God's favor on our own. But God is rich in grace, slow to anger, and abounding in steadfast love. This is the good news we believe and share. Jesus came to redeem us from the penalty of our sin, forgive us for our transgressions, and rescue us from our self-inflicted entanglements so all manner of sin.
Just as we are not sinners because we sin, God is not gracious because he forgives. We sin because we are sinners. And God forgives us because he is gracious.