Underquoted salary on initial application, just passed the final round. I put a plain baseline without researching market rates, bonuses, or benefits.

Things slightly changed this month:
1. Research shows market rate is much higher.
2. Got a year end raise, so my current salary is now higher than the one I submitted.

How do I reset expectations with HR without looking unprofessional? Should've asked for their budget first.
Anyone successfully renegotiated or came across such situation?

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It depends

If you gave the first number, they said okay and their pay band goes significantly higher, that's regular negotiation. They don't have to say yes if you don't have a competitive offer, but it would be stupid for them to lose a strong candidate

If they told you the range, you said yes, and later discovered that the top of the range for that role is significantly below your market value, you're screwed.

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my take, depends do u have “b*lls of steel” (or equivalent) or not. are you willing to walk away from the offer?

if the answer is yes to both, be honest and just say hey really interested in this role, super impressed by my interviewers and really see myself growing here, so asked a bit more and met a few people and saw the salary range significantly diff than my initial thoughts. my expectation is to be within range of colleagues of X-Y.

i did the exact same thing and now started my new role on tuesday with this exact thing. i even quoted higher than what people told me,they countered something in the middle but significantly higher than initial offer

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