Take a look at
File New Variations in the Versions of Word for options to create new files.
If you install the following macro, it will give you the classic File Open dialog which will open to your default storage location for documents when you first start Word and to the last place you opened a document from in Word this session or last saved to in Word this session. (In other words, you alter the location by altering what you open and ave and where.)
Code:
Sub DocOpenDialog()
'Displays Document open dialog
Application.Dialogs(wdDialogFileOpen).Show
End Sub
That macro can be attached to your QAT in place of the File Open button and can be attached to the Ctrl+O keyboard shortcut.
See
Installing Macros for information about how to add macros to your system.
See
Modifying the QAT and Ribbon in Microsoft Word for more on modifying the QAT.