You should have pressed the brake pedal a couple of times initially to set the pads and caliper piston before using the handbrake. Failure to do this can cause the handbrake internal mechanism in the calipers to self-adjust to the wrong position.

If you did not do the above, I would recommend removing the calipers, rewinding the piston and reset using the pedal beforehand.

Once the handbrake has been set to the calipers, then climb underneath and adjust the handbrake height accordingly. I normally set it so that 1 click just stops the wheel from turning when the wheel is turned by hand, but other people may have other opinions depending on preference.