I've not seen things said quite that way before. Not that it isn't perhaps the case, but can you show where or how Baxter said that?
Here are some quotes from him along those lines from his
Confession:
"Ʋnderstand therefore (as I shall say more anon) that pardon of past sins, is a step to our future Sanctity and Obedience, as one of its ends. Therefore doth Christ pardon what is past, that we may be in a capacity accept∣ably to return to God by obodience."
(p. 39)
"Our first general pardon is, that we may escape Gods wrath, and be capable of acceptable Obedience for the future: Our following particular pardon of each particular sin, is that we may escape Gods wrath for that sin, and may have the blemishes and defects of our obedience supplied, and healed, and covered, and may be continued in a capacity of acceptable obeying for the future; which else we could not be, seeing the defect of the best duty deserveth con∣demnation; and therefore it is through pardoning grace that the de∣fects must be covered, that it may be accepted."
(p. 40)
"29. Therefore it is that every Christian must first bend the pow∣ers of his soul, for holiness and obedience, and for these lay out the first of his care and labour, and but consequentially for Remission of sin, because of his unavoidable failing in his first attempts for obedi∣ence.*Otherwise, if before the sin is committed, the Righteousness of Remission were in order to be referred and desired before the Righ∣teousness of obedience, then a man that should use his utmost endea∣vour to commit as many sins as he could, or at least, as he could hope should be pardoned, and he that sinned most, that he might have the most use for pardon, did take the most pleasing course to God, and so men should sin that grace might abound. Then which wicked imagi∣nation, nothing is more contrary to Gospel-Grace.
30. Therefore it is also, that God doth deter men from some grea∣ter*sins, as more difficult to be pardoned in some respects, then less: that is, They shall not have the pardon of them, at least fully, on so quick and easie terms, as the other: nay he deterreth them from go∣ing far in sin, either as to the intensive increase, or the continuance of time, lest he cut them off, or withdraw his Grace, and give them up to themselves, and pardon them not at all..."
(p. 42)
"There is much more goes to the continuing and consummating*our Justification, then doth at first to justifie us, as to the condition on our parts, to be performed to that end. Faith alone without ex∣ternall acts of Obedience, doth suffice to our first Justification: Yea, the first solitary numericall act of faith: But so it doth not to the continuance. For there is still requisite thereto, 1. The continuance of the Habit, 2. And renewing the act of that faith, 3. The additi∣on of sincere Obedience: and many particular Materials of that Obedience (but not all) are made so necessary, that without them, the obedience cannot be sincere; as to be Humble, to forgive others, to love one another in Christ, to be merciful, to confess Christ, and suffer for him, if called to it, &c. these must be in the Habit, and ordinarily prevalent in act, upon opportunity."
(p. 47)
"3. That Covenant-keeping by sincere Love, Thankfulness and O∣bedience to God▪ Redeemer is a Condition of the Continuing, or not∣losing our state of Iustification.
4. That the Renewal of our Faith and Repentance, upon our lapses into discerned wounding sins, is a Condition of the particular pardon of those sins, and our Discharge or Justification from the guilt of them.
5. That all the foresaid Conditions, Faith, Repentance, Love, Thankfulness, sincere Obedience, together with final Perseverance, do make up the Condition of our final Absolution in Iudgement, and our eternal Glorification."
(p. 56)
"Conclu. 11. No sins of Believers are actually pardoned before they are committed, or in being.
Conclu. 12. Though all true Believers are under Grace, and as to their state and all their former sins, are delivered Actually from the Condemnation, or Obligation of the Law, being truly forgiven, and so lyable to none of its threatnings, yet when new sins are by these believers committed, this moral Law is so far in force against them, as to make them guilty of Death, till the Promise come in and remove that guilt by a fresh pardon: It makes death their due, though God by his Gospel do presently Re∣mit it."
(p. 109-110)
"NO sin to come is actually pardoned, it being no sin, nor capable of actual pardon: Though fu∣ture pardon be certain, and in Causis, (which some call a Virtual pardon, but scarce well) yet it existeth not. Par∣don is perfect in its kind, when all sin is pardoned, though that which is not yet sin or guilt, must have a future par∣don, when the necessity aris∣eth."
(p. 172)
Regarding his scruples with the Westminster standards, he says in the preface that his work contains "[his] subscription to the Assemblies lesser Catechism. Sect. 4▪ [his] Consent to the larger Catechism of the Assembly; supposing a Liberty of Expounding four Pas∣sages. Sect. 5. [his] Consent to the Assemblies Confession of Faith, supposing the Liberty of expounding six Passages, as is expressed. Sect. 6"