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As for pruning your redbud tree, the proper time is either immediately after it has completed blooming or when the tree is dormant in later winter (before it starts to flower or leaf out).
It is best to prune and shape this tree while it is young because of its susceptibility to so many diseases (Canker, Verticillium Wilt, and Rebud Leaf Spot, for examples). When the tree is young, the limbs or branches are small, so the wounds that are made from pruning are naturally small and will heal over quickly. In contrast, pruning off large branches results in leaving large wounds which may take several years to heal over. The longer a wound takes to heal over, the greater the risk of a pathogen entering the wound and infecting the tree with a disease.
However, now that your tree is beyond the young stage, you will need to remove some large branches to acquire the desired results you are after. At no time should more than 25% of a tree's top growth be removed intentionally (a windstorm that may cause a lot of damage is unavoidable, for example). A tree needs branches and leaves to produce food through the process of photosynthesis. If too many are removed at one time, the tree can suffer from a shortage of food production and the 'dwarfing' effect may occur - the tree will remain the same size for many years, or even die. Secondly, if two many branches are removed at one time, the tree now has a lot of established roots, but fewer branches and leaves to use the moisture and nutrients the roots can supply it. So, the tree can put out a horribly huge amount of water sprouts or suckers from dormant, latent buds, which rob nutrients from the good parts of the tree besides ruining the entire shape and look of the tree, if they are not removed. A portion of the topgrowth should be removed each year until the desired effect is achieved.
So basically, remove a few of the larger lower branches (do not leave any stubs as these will not heal over) and any branches that cross or rub each other, up to a maximum of 25% of the trees topgrowth in the first season. Remove smaller branches where they join a larger branch, again leaving no stubs. Before any pruning is done, take a look at the tree and keep in mind the natural shape of the tree. One can not put a branch back on the tree after it is cut off. The idea is to form a tree with strong (branches are at right angles to the trunk), well spaced main branches that hold true to the shape of that species of tree, along with an open, airy canopy by removing crowded branches in the canopy. Tree wounds do not need to be painted with a tree dressing, but if you feel it is necessary, use only Pine Tar Tree Wound Dressing.
I hope your tree does well and will not have to be removed. Best of luck with the pruning!